Why We Need A Smart Contract

Question 1

Born concept of the smart contract

Answer 1

Was born there well before the advent of the Bitcoin.

Question 2

Smart contracts is …

Answer 2

Smart contracts is the centerpiece and main thrust of Ethereum blockchain.

Question 3

Linux Foundation’s Hyperledger blockchain about Chaincode

Answer 3

Has a smart contract feature called Chaincode.

Question 4

The docker environment.

Answer 4

The Chaincode is written in go language, and executed in a docker environment.
Docker is a lightweight container technology for executing programs.

Question 5

Remix development environment

Answer 5

Use remix development environment for building and testing smart contract, and deploy the smart contract using remix, and invoke the contract from a simple web interface.
We’ll use remix integrated web interface for hands-on explorations.

Question 6

What bitcoin added?

Answer 6

Bitcoin added a simple conditional transfer of value added a simple conditional transfer of value through an embedded script.
That was bootstrapped as a softfork in Bitcoin.
The script was limited in its capabilities.
It enabled simple conditional transfers.

Question 7

After Bitcoin, envolved Ethereum.

Answer 7

The founders of Ethereum developed smart contract keeping Nick Szabo’s idea of a smart contract from over 20 years ago in mind.

Question 8

What’s a significant contribution of Ethereum

Answer 8

A significant contribution of Ethereum is a working smart contract layer that supports any arbitrary code execution or the blockchain.

Question 9

Smart contracts allows

Answer 9

Smart contract allows for user-defined operations of arbitrary complexity. This feature enhances the capability of Ethereum blockchain to be a powerful descentralized computing system.

Question 10

Why would you wnat to transfer currency? For what?

Answer 10

Cryptocurrencies such as Bitcoin, enable transfer of values such as money or currency from peer-to-peer without any intermediaries.
For what? To give somebody to buy a product, maybe even renew a driver’s license, or send flowers to someone.

Question 11

Suppose we may want the gift to be delivered on a certain date. Buy a product with a particular color and quality. We may need some credential verified for renewing the license.

Answer 11

Smart contract addresses this need (conditions, rules, policies beyond that of which a simple money transfer cryptocurrency protocols cand handle)for application specific validation for blockchain application.

Question 12

Advantages of smart contracts

Answer 12

Smart contract has some advantages including, a smart contract facilitates transaction for transfer of assets other than value or cryptocurrency.
Smart contract allows specification of rules for an operation on the blockchain. It facilitates implementation of policies for transfer of assets in a descentralized network. It also adds programmability and intelligence to the blockchain.

Question 13

What smart contracts represent?

Answer 13

The smart contract represents a businees logic layer, with the actual logic coded in a special high level language.

Question 14

Smart contract embedded function

Answer 14

Smart contract embedded functions that can be inboked by messages that are like function codes. These messages and the input parameters for a single message are specified in a transaction.

Question 15

Comparing Bitcoin and Smart contract transaction …

Answer 15

Let us compare Bitcoin transaction and a smart contract transaction. As you can see in Bitcoin, all the transactions are about send value. In the case of a blockchain that supports a smart contract, a transaction could embed a function implemented by a smart contract.f

Question 16

What the functions of smart contracts

Answer 16

The functions are ValidateVoter, Vote, Count, Declare Winner. Smart contract provides a layer of computation logic that can be executed on the blockchain, thus availing the features enabled by the blockchain framework.

Question 17

Smart contract providing…

Answer 17

Smart contract providing the application framework for a domain application.

Question 18

All forms of operations performed by a smart contract are ___ on the blockchain

Answer 18

All the operations are transparent and are recorded on the blockchain

Question 19

What problems smart contract can solve

Answer 19

Typically, currency transfer is used to buy a service, a product or a utility from a person or a business.
There may be other conditions besides availability of funds while executing a transaction may involve rules, policies, laws, regulations and governing contexts.
Smart contract allows for these other real world constraints to be realized on a blockchain, thus a smart contract enables a wide variety of descentralized application of arbitrary complexity to be implementend on the blockchain.

Question 20

Smart contracts is ushering…

Answer 20

Smart contract is ushering the next generation blockchain that goes beyond the transfer of value into a visionary realm.

Question 21

Smart contracts allows …

Answer 21

Smart contracts allows for implementation of rules, policies and with the help of blockchain, supports the methods for governance and provenance.